Location: Stone County, AR | Metro: Stone County, AR
| Unit Size | Monthly FMR |
|---|---|
| Studio | $660 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 72567 reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $880, while the current market rent stands at $438. This results in a gap of $442, or approximately 50.2%.
In this scenario, where the FMR exceeds the market rent, it is clear that voucher tenants can potentially increase the yield for landlords and small-portfolio investors. Given the median income in ZIP 72567 is $53,438, the higher FMR allows landlords to charge rates closer to the FMR without deterring tenants who qualify for the Section 8 program. This means landlords can benefit from a more favorable rental income compared to the open market rate.
The lower market rent of $438 indicates a softer rental market, where the actual rents paid by tenants are significantly below the FMR. For investors, this represents an opportunity to leverage the government subsidy to achieve a better cash flow. With only 7.7% of the population being renters, competition for rental properties is likely low, making it easier to attract tenants who can pay the higher subsidized rates.
However, it's important to note that accepting Section 8 tenants comes with its own set of challenges, including compliance with HUD regulations and potential delays in receiving rent payments. Despite these hurdles, the financial benefits of closing the gap between the FMR and the market rent can make this a strategic investment choice for those willing to navigate the requirements.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.